The World Travel & Tourism Council’s (WTTC) 2024 Economic Impact Research (EIR) has today revealed a record-breaking year for Travel & Tourism in Kenya, contributing KES1TN to the national economy in 2023.
Sector jobs grew 6% to reach a record 1.55MN, accounting for one in 13 jobs across the country.
While domestic visitor spending reached more than KES 466BN last year, almost 15% over the previous peak and setting a new record, spending by overseas visitors continued to trail the highpoint of 1999 to reach just KES 266BN.
Julia Simpson, WTTC President & CEO, said; “The recovery of Kenya’s Travel & Tourism sector is a testament to its resilience. Achieving record-breaking growth across economic contribution, jobs, and domestic visitor spending highlights the sector’s vital role in the nation’s economy.
“Although international visitor spending is currently lagging behind its high point, the future of Travel & Tourism in Kenya looks strong, with substantial opportunities for growth and development over the next decade.”
What Does This Year Look Like?
According to the global tourism body’s latest research, Travel & Tourism’s contribution to Kenya’s economy is forecast to grow 9% year-on-year to reach almost KES 1.15TN.
Jobs supported by the sector are projected to reach more than 1.6MN, representing almost 8% of jobs in Kenya.
Domestic visitor spending is expected to continue driving the sector to reach KES 521BN, but spending by travellers from overseas is forecast to remain below the previous high to reach KES 289.5BN.
What Does the Next Decade Look Like?
With the right government support, WTTC is forecasting that the sector could grow its annual GDP contribution to KES 1.7TN by 2034, representing 7.4% of Kenya’s economy, and could potentially employ more than 2.2MN people across the country.
See all the data in our Kenya Travel & Tourism Economic Impact Report on the WTTC Research Hub.
The World Travel & Tourism Council’s (WTTC) 2024 Economic Impact Research (EIR) has today revealed a record-breaking year for Travel & Tourism in Kenya, contributing KES1TN to the national economy in 2023.
Sector jobs grew 6% to reach a record 1.55MN, accounting for one in 13 jobs across the country.
While domestic visitor spending reached more than KES 466BN last year, almost 15% over the previous peak and setting a new record, spending by overseas visitors continued to trail the highpoint of 1999 to reach just KES 266BN.
Julia Simpson, WTTC President & CEO, said; “The recovery of Kenya’s Travel & Tourism sector is a testament to its resilience. Achieving record-breaking growth across economic contribution, jobs, and domestic visitor spending highlights the sector’s vital role in the nation’s economy.
“Although international visitor spending is currently lagging behind its high point, the future of Travel & Tourism in Kenya looks strong, with substantial opportunities for growth and development over the next decade.”
What Does This Year Look Like?
According to the global tourism body’s latest research, Travel & Tourism’s contribution to Kenya’s economy is forecast to grow 9% year-on-year to reach almost KES 1.15TN.
Jobs supported by the sector are projected to reach more than 1.6MN, representing almost 8% of jobs in Kenya.
Domestic visitor spending is expected to continue driving the sector to reach KES 521BN, but spending by travellers from overseas is forecast to remain below the previous high to reach KES 289.5BN.
What Does the Next Decade Look Like?
With the right government support, WTTC is forecasting that the sector could grow its annual GDP contribution to KES 1.7TN by 2034, representing 7.4% of Kenya’s economy, and could potentially employ more than 2.2MN people across the country.
See all the data in our Kenya Travel & Tourism Economic Impact Report on the WTTC Research Hub.
The Ghanaian Ministry of Foreign Affairs on Wednesday, June 19, informed its citizens that it had reached a deal with the Kenyan Government to scrap Electronic Travel Authorisation (ETA) fees.
Since January 2024, Ghanaians have been paying Ksh3,870 (USD30) ETA fees to enter Kenya despite Kenyans being exempted from visa requirements while travelling to Ghana.
The ETA fee was introduced by President William Ruto’s administration after he waved visa requirements for all global citizens.
Ghanaian government had raised complaints considering that the two countries had a Memorandum of Understanding (MoU) in immigration.
“The Ministry of Foreign Affairs and Regional Integration wishes to inform the public that Kenya in recognition of the existing visa-free regime agreement between Kenya and Ghana has informed that Ghanaian travellers will now be issued an ETA on gratis upon application for travel to Kenya,” the statement read in part
“In that regard, Ghanaians intending to travel to Kenya are to submit their ETA application through www.etakenya.go.ke for approval prior to their departure.”
Kenya has been in the recent past waving ETA fees for countries that had previous visa-free agreements with.
In February, Ruto’s administration waived ETA fees for seven countries that had signed a visa-free agreement with Kenya between September 2022 and December 2023.
These countries included; Comoros, The Republic of Congo (Brazzaville), Eritrea, Ethiopia, Mozambique, San Marino and South Africa.
The countries joined 7 East African Community (EAC) that had been previously exempted from the ETA fees.
Before President Ruto abolished visa requirements, citizens from 51 countries were able to jet into Kenya by the power of their passports.
The National Government has not issued a statement about whether the 51 countries in future will all be exempted from paying ETA fees.
Codeshares are perhaps the most confusing customer facing part of any passenger’s journey. You turn up at the airport, look for your check-in desk or gate number and cannot see your flight on the departure screens. You see a flight to your destination, with the right time, but not with your flight number – are you confused, is that your flight in disguise, is there somebody you can ask to check? Welcome to the world of airline codeshares!
WHAT ARE AIRLINE CODESHARES?
A great question and one that we have explained to people every year since they began to emerge in our databases in 1986. In those days airlines wanted to expand their networks with limited risk but in many cases were restricted as to where they could fly to and from.
Some airlines created a workaround, a codeshare where they placed their code and a flight number on a flight operated by another airline with whom they had a commercial relationship. A great way to virtually expand your own operational network, generate more sales and tell customers that you could sell them a ticket to nearly anywhere in the world, even if not on your own plane.
Since then, airlines have fallen in love with the idea of codeshares and today they are commonplace in every market – but how do they work, and what are the benefits?
HOW DO AIRLINE CODESHARES WORK?
In the aviation data world, we refer to the ‘operating carrier’ and ‘marketing carrier’. The operating carrier is the airline that flies the plane, supplies the cabin crew etc, and the marketing carrier is the carrier that sells tickets for the flight.
WHY DO CODESHARES EXIST?
An airline recognizes there is demand from their market to fly to a destination, but the airline does not operate flights to that destination (or at least not with enough frequency).
THE CODESHARE SOLUTION:
The airline knows a friend – another airline – that can connect and take passengers from a point the airline already flies to and take them to their final destination.
This allows the operating airline to keep most of the revenue from that ticket sale whilst “feeding traffic” to the friend. And hopefully that friendly airline, which may be in the same airline alliance, can feed them some traffic in the other direction, essentially scratching each other’s backs. Everyone wins – the airlines have an opportunity for more traffic and more revenue, and they create a superior travel experience with a seamless passenger journey.
For this to happen the operating carrier sends their schedules to the marketing carrier. The marketing carrier puts their flight number on the service and distributes that operating carrier’s service with their own flight number. Suddenly BA173 from LHR to JFK becomes AY5473 – it is a British Airways service, but one on which Finnair sells seats as a codeshare.
To be at their most effective, airlines try to offer similar pricing on the flights. However, just occasionally you can grab a bargain from a codeshare airline whose fares have not quite synchronized with the operating carrier’s latest pricing. With demand changing by the minute this isn’t a surprise, but it can be an opportunity for the clever traveler to save some cash. If you’ve saved US$200 do you really care if your Lufthansa ticket has an Austrian Airlines flight number?
MAXIMUM DISTRIBUTION, MAXIMUM NETWORK, MINIMAL INVESTMENT
The busy network map below shows all the US domestic routes on which Iberia, Spain’s largest airline, has codeshares operated by a Oneworld Alliance partner airline.
If you didn’t know otherwise it looks like Iberia operate across the whole of the United States. However, all these flights are actually operated by American Airlines, with an Iberia flight number on the service. This allows Iberia to sell a flight from Madrid to Houston, for example, with a direct flight to Miami and then a connection onto IB4945 – a perfect way to look bigger than you really are, loved by airline PR teams around the world!
CODESHARES KEEP YOUR FRIENDS CLOSE AND YOUR ENEMIES EVEN CLOSER
While we might expect airlines to operate codeshares within airline alliances, many airlines also have codeshares with airlines that are not in their alliance or – even worse still – in another alliance!
SO WHY DO THEY DO THIS?
Well, in some cases it’s because there are only two very large airlines in the domestic market. Australia is a great example – if you don’t fly with the Qantas Group airlines then the only real option is Virgin Australia, and Virgin Australia know this! They literally have hundreds of daily codeshares with airlines such as Qatar Airways (Oneworld Alliance), and Singapore Airlines (Star Alliance). Perrhaps illogically, Qantas also have codeshares with Air New Zealand, another Star Alliance member. It may seem odd, but for the traveler it allows the maximum choice of service, which has to be a good thing.
But is there more to it than just flights?
CODESHARES ARE EVERYWHERE
Codeshares exist in every market and indeed even stretch beyond airlines to include train services and more recently some coach services, although they are far more niche in nature. In theory, there is no limit to the number of codeshare partners that an airline may have, although keeping track of them all and undertaking all the work required to keep agreements provides some focus to which airlines partner up. And of course, every small airline wants to have a codeshare with a global airline and sometimes that desire isn’t reciprocated by the larger airlines; they can be fussy!
To highlight just how many codeshare partners airlines have, we listed some of the larger airlines and their codeshare partners, with Air France/KLM managing over 40 such relationships which, whilst creating a lot of work, presumably generates significant revenues.
HOW ARE THE SEATS DIVIDED ON A CODESHARE FLIGHT?
When an operating air carrier decides to allow seats and space to be sold by other, marketing carriers, there are two types of commercial duplications; ‘free sale agreements’ and ‘leased block space’.
Free Sale Agreement – The operating and marketing carriers continue to sell seats until the flight is fully booked, there are no limitations on how many seats the marketing carrier can sell.
Leased Block Space – The operating carrier allocates a fixed number of seats to the marketing carrier/s.
AIRLINE LOYALTY AND CODESHARES
If you know a regular traveler then they will have a good idea of their status level and points balance with their favorite airline, and in most cases those people treasure that status. In many codeshare situations the operating airline will allow the marketing carrier’s passengers to earn points and will offer them the same access to lounges that they would expect to have when flying with their preferred airline. The ability to earn – and in some cases burn – points is crucial, and airlines recognize this important factor – making sure that the passenger’s points are recorded by the marketing airline as quickly as possible. Seamless services, through check-in, lounge access, priority boarding and seat assignment are the softer elements of codeshare operations, but make all the difference.
THE CHALLENGES OF CREATING SEAMLESS CODESHARES
Although codeshares have many benefits, they do come with their own challenges, too.
When codeshares are on sale it’s crucial that the schedules are the same from both the operating and marketing carrier, otherwise passengers could misconnect, at both a reputational cost to the airline and a financial one. Synchronizing those codeshare flights is a constant challenge for airlines, and when the operating airline makes a schedule change, keeping up to date with the changes can be a full-time job for the marketing airlines.
Managing all these codeshares is a complex process that involves multiple data types used in conjunction. Marketing airlines need access to the latest schedule information from the operating airlines to help keep their customers up to date on changes to flight time, equipment type or cancellations. They also need to refer to Minimum Connection Time information to build viable connections and help avoid the risk of costly missed connections.
Additionally, when you consider that the slightest of changes to an industry code can impact the integrity of any related flight information, or introduce the complexity of – for example – navigating daylight saving times in different time zones, the importance of a single source of truth is revealed.
It’s not just the data itself that needs to be up to date. Legacy systems can be clunky to integrate, with data siloed into different areas. What’s more, with the possibility of receiving schedule changes by the minute, older systems may not be capable of handling the high volume, real-time data now available.
To address this, airlines are looking to cloud-based solutions, which offer ease of integration and more agility, bringing together different data sets that can be refreshed quickly and without causing a system meltdown. OAG has helped many airlines migrate to the cloud environment of Flight Info Direct, powered by Snowflake.
Below we look in more detail at the challenges involved in successful codesharing, and how they may be solved.
OPERATIONAL CO-ORDINATION
Synchronizing flight schedules and status updates across two different carriers can be complex. OAG processes hundreds of thousands of schedule changes per day, so it can be challenging for airlines to keep up with all the changes if they don’t have an alerting solution in place like Flight Info Alerts.
When submitting their flight schedules, Airlines provide a DEI (Data Element Identifier) to ensure that systems can read their updated flight schedules.
There are two types of DEIs that are submitted with flight schedules:
DEI 010 – Is used on the operating flight leg. This identifies all the commercial duplicate airline designators (operating and marketing carriers) and flight numbers.
DEI 050 – This data field is loaded on the commercial duplicate carrier field. This identifies the operating airline and the flight number. MCTs (Minimum Connection Times) have been built in a way that codeshare marketing carriers submitting the DEI 050 on their flights do not need to file MCTs at all if they are happy with their operator’s filed MCTs. This makes it easier for marketing carriers to maintain their files and reduce the number of MCTs required.
IT & SYSTEMS INTEGRATION
Integrating different reservation systems is crucial for a seamless booking and traveler process. Disrepencies can result in booking errors or cause inconvenience for passengers. In addition to this, ensuring secure and efficient data sharing between airlines’ systems is essential for consistent passenger information, flight status and operational details.
BAGGAGE MANAGEMENT
Ensuring that baggage is efficiently transferred between different carriers, especially during tight connections, can pose significant challenges. That’s why many airports and airport service providers such as baggage management companies use Flight Status Data from OAG to receive up-to-the-minute flight information for all airlines.
Syncronized data in the cloud is breaking down barriers for codeshare flights, allowing carriers to utilize and share their data with one another to create a seamless experience for the passenger. High quality schedules data that’s updated every 15 minutes helps both operating and marketing carriers stay in the know. In addition to this, cloud data platforms like OAG’s Flight Info Direct can handle volumes of data at speed and scale compared to legacy systems.
THE FUTURE: LOW-COST AND LEGACY CODESHARE AGREEMENTS
Codeshares started to appear in 1986 and they are not going to disappear. Some of the archaic regulations around airline ownership mean that the only way for airlines to offer customers what they want – and of course to generate more revenues – is to offer codeshare services. Indeed, even some of the world’s largest low-cost airlines are working on codeshare agreements with legacy airlines to expand their networks and attract more passengers.
JetBlue in the United States may have started as a low-cost airline but have emerged as a formidable codeshare partner for many international airlines operating to the US. We’ve mentioned the Virgin Australia situation and in its own way even easyJet have a codeshare product with their virtual interlining service, with both low-cost carriers such as Norse Airways and legacy airlines including Emirates.
With little changing in the regulatory world of airline services, the chances are that at some point many of us will travel on a codeshare flight in a seamless and painless way, perhaps not even realizing what has happened. A few of us may panic when we don’t immediately see our flight on the departure screen but if you are patient as the screen changes your flight will appear, as if by magic!
The number of Chinese tourists bounding for Kenya may triple over the next few years, following a surge in arrivals to the East African country last year, according to the tourism authority in Kenya.
Kenya’s tourism sector, a pillar industry, sees a huge opportunity in the Chinese market, and the country will intensify cooperation with industry players in China to tap the potential, June Chepkemei, the chief executive officer of the Kenya Tourism Board, said on Wednesday.
Tourism arrivals from China last year exceeded 52,000, a 161 percent growth compared with 2022, she said.
“China was the most improved tourism source market in 2023. Majority of the tourists come for leisure holidays followed by business and conferences,” she said at a tourism promotion event in Kenya’s capital Nairobi, which was held in collaboration with the Chinese city of Zhengzhou.
“Kenya Tourism Board is keen to collaborate with many stakeholders like media, governmental bodies, private sector partners like China based tour operators, online travel agencies, corporates and airlines to market Kenya,” Chepkemei said, adding that Kenya sees a huge opportunity in large number of Chinese outbound tourism and aims to attract 150,000 tourists annually.
Chinese tourists restarted to travel overseas in January last year, with the lifting of overseas travel restrictions by the government. Outbound travel from China was largely halted for three years, to prevent transmission of the virus, since the start of the COVID-19 pandemic.
Kenya, she said is the home of human origin hence people from across the globe are welcome to visit the east African country, to experience the thrill of adventure, enjoy authentic cultural immersive experiences and view teeming and diverse wildlife.
This is in addition to enjoying pristine beaches with warm waters, welcoming and hospitable Kenyans as well as enjoy Nairobi – the best city to visit in year 2024 according to Lonely Planet.
On Wednesday, the Kenya Tourism Board expressed an intention to partner with Zhengzhou Radio and Television station to market Kenya as a tourist destination to Chinese.
“Media plays a very key role in amplifying destination marketing. We are keen to leverage Kenya’s and China’s vibrant media landscapes to keep the tourism narratives alive, telling experiential stories to inspire travel,” Chepkemei said.
She said Kenya Tourism Board is happy to share video content of Kenya’s tourism experiences with Zhengzhou Radio and Television Station. The content will showcase Kenya to Chinese people, aimed at sparking or keeping alive the interest and desire to visit MagicalKenya, an all year-round destination.
To further woo Chinese travelers to Kenya, on May 10, the Kenya Tourism Board in partnership with the Hunan Provincial Department of Culture and Tourism, launched China-Kenya Tourism Service Platform, aimed at linking Chinese travelers with the Kenyan tourism market.
Towards the end of last year, the board also held roadshows in Beijing, Shanghai and Guangzhou to market Kenya as a year-round destination among Chinese tourists. ‘
The shows involved business-to-business sessions between travel trade officials from Kenya and tour operators from China.
The Kenyan tour operators got an opportunity to reconnect with their counterparts in China and got clear understanding of the tourists’ interests and preferences.
Kenya Airways resumed its direct flights between Nairobi and Maputo, offering three weekly flights on Wednesdays, Fridays, and Sundays. This relaunch provides a convenient travel option for passengers originating from Kenya and serves as a vital connection point for travelers from other African cities via Nairobi.
The expansion will allow Kenya Airways to improve intra-Africa connectivity, which is crucial for driving economic growth, enhancing trading opportunities, and expanding businesses across local and intercontinental economies. This new route supplements KQ’s current service to Nampula, Mozambique, strengthening its regional footprint.
“Today’s launch is a tangible testament to KQ’s remarkable progress and the exciting future ahead. As we unveil our 45th destination -Maputo – we mark a major milestone in our network expansion journey,” says the Group Managing Director and Chief Executive Officer, Mr Allan Kilavuka.
In addition to Maputo, this expansion aligns with Kenya Airways’ broader network strategy for 2024, which includes more frequent flights to popular destinations such as New York, Paris, Lagos, Accra, and Freetown.
“Aviation is critical to boosting national GDPs by creating jobs and fostering economic activity. The increased intra-African travel will act as a catalyst for economic development across the continent. Our passion lies in fostering connections across the continent, making trade and travel between our nations more accessible than ever before,” Allan Kilavuka further added.
Speaking at the same event, Julius Thairu, Kenya Airways Chief Commercial and Customer Officer, noted that KQ’s expansion is linked to KQ’s mission of propelling Africa’s prosperity by connecting its people, markets and cultures. “The demand for air travel is soaring, and we’re determined to meet it by expanding our reach and fostering connections between Africa’s rich cultures and thriving economies. Adding Maputo to our network strengthens ties between Kenya and Mozambique, opening doors for increased trade, tourism, and cultural exchange.” he said.
Maputo, besides being a major trade hub for southern Africa, captivates visitors with its blend of history and culture. Portuguese colonial influences are visible in its architecture, while lively markets and a thriving art scene showcase contemporary Mozambican life. Whether you’re looking for relaxation on pristine beaches or exploration in museums, Maputo offers an unforgettable experience.
The three weekly scheduled flights are as follows:
Despite a surge in passenger traffic, the air transport industry improves baggage handling efficiency, with mishandled baggage rates decreasing, aided by AI and data analysis technologies.
SITA, air transport technology solutions, reports an improvement in baggage handling efficiency despite increased passenger traffic. According to the SITA Baggage IT Insights 2024 report, mishandled baggage rates decreased from 7.6 to 6.9 per 1,000 passengers in 2023, even as passenger numbers surged to 5.2 billion, surpassing pre-pandemic levels.
Key technological advancements, particularly in AI for data analysis and computer vision in automated baggage handling, have contributed significantly to this improvement. The report notes a 63% decline in mishandled baggage from 2007 to 2023, despite a 111% increase in passenger numbers.
The air transport industry continues to face challenges, especially with rising baggage volumes. The push for digitalization, including full automation, effective communication, and comprehensive visibility of each bag’s journey, is crucial. The survey highlights the importance of self-service technologies, with 85% of airports and two-thirds of airlines now offering self-service bag drop options.
Collaboration remains essential, with SITA emphasizing the need for better data sharing between airlines and airports. Currently, only 58% of airlines share baggage collection data, while 66% of airports share delivery data with airlines. The International Air Transport Association (IATA) and Airports Council International (ACI) advocate for full baggage tracking and real-time status updates to enhance passenger experience and reduce anxiety.
David Lavorel, CEO of SITA, emphasized the importance of these technological advancements: “The improved mishandled baggage rate is encouraging, especially with the increase in global passenger traffic. Investments in AI and computer vision technologies, along with better collaboration and communication, are essential for smoother operations and better passenger experiences.”
Regional Insights
North America: The baggage mishandling rate dropped from 7.1 per 1,000 bags in 2007 to 5.8 in 2023, with U.S. airlines reducing mishandling by 9% in 2023.
Europe: The region saw the largest global decrease, from 16.6 per 1,000 bags in 2007 to 10.6 in 2023.
Asia Pacific: Maintained the lowest mishandling rates globally, at 3.0 per 1,000 bags in 2023, reflecting successful digitalization investments.
The Kenya Association of Travel Agents has inked a Memorandum of Understanding (MOU) with Kenya Airways to foster collaboration in their operations.
This strategic collaboration, initiated by travel agents, aims to bolster the national carrier’s market presence and strengthen its competitive position within the industry.
This partnership is expected to bring about significant benefits for both parties, leveraging the expertise and networks of travel agents to drive the growth and innovation of Kenya Airways.
Speaking at the 44th Annual Travel Convention and General Meeting under the theme ‘Make the Connection’ held at Sarova Whitesands, Mombasa, the Chief Executive Officer (CEO) of KATA, Nicanor Sabula, highlighted the substantial impact of recent government policy changes, technological advancements, and the overall growth of the industry.
He noted that these developments are shaping the future of travel, requiring stakeholders to adapt and innovate in response to the evolving landscape.
The meeting brought together more than 300 delegates representing the travel agency community.
“We have invited our colleagues from six of our neighbouring African countries, representing Tanzania, Rwanda, Uganda, Zambia, Zimbabwe, and Malawi, so that we can share knowledge to be able to make the connection alongside growing our Intra- Africa Travel,” Sabula said.
He noted that they had also discussed the contemporary issues emerging in society, including Artificial Intelligence and how it can be used to support businesses.
He highlighted that the industry’s statistics indicate that Kenya has recovered and surpassed the pre-pandemic numbers by approximately 30 per cent. Initially, the recovery was projected to be achieved by 2025; however, by the end of 2023, the sector had already experienced a 30 per cent recovery, demonstrating a faster-than-expected rebound.
Patrick Bucha, Secretary for Tourism and Wildlife, highlighted the Ministry’s commitment to broadening the industry’s scope through medical tourism advocacy and exploring unconventional offerings beyond traditional staples.
“This forward-thinking approach underscores the government’s dedication to catering to the evolving needs and preferences of global travelers,” he stated.
He highlighted that a key focus area is developing and marketing Kenya as the “Home of Human Origins,” leveraging our rich heritage and cultural tapestry to offer an immersive journey into the cradle of humanity. Through this initiative, the aim is to captivate visitors with an unparalleled exploration of our nation’s historical and anthropological significance.
Moreover, Bucha noted that the Ministry recognises the private sector’s invaluable role in driving this transformative vision. It is eager to foster close collaborations with the Kenya Association of Travel Agents (KATA), harnessing their expertise and insights to craft innovative tourism experiences that resonate with diverse audiences.
The Chairman of KATA, who is also the Managing Director of Hemingways Travel, Joseph Kithitu, highlighted on the importance of leading the change in advocating for a shift in mindset to be able to be embraced as travel advisors by travel agents, as that aligns with the changing landscape and reflects the role they play in the travel industry.
Regarding infrastructure, Kithitu said that the infrastructure development to expand the travel and tourism industries has been steadily progressive. However, he called for the acceleration of this to maximise the benefits that come with it, stimulate growth in the tourism sector, and increase economic benefits for the nations.
The Group Managing Director and CEO of Kenya Airways (KQ), Allan Kilavuka, addressed the importance of the collaboration with the Kenyan Travel Advisors, noting that KQ recognises the crucial partnership with the advisors in the aviation industry.
Kilavuka expressed that, in line with the convention’s theme ‘make the connection’ he commits to forging deeper synergies between KQ and KATA to unlock new opportunities to elevate the entire travel ecosystem.
“This recent period has been an eventful chapter for Kenya Airways, marked by significant strides, overcoming challenges, and setting our sights on new horizons. We recorded a full-year operating profit of Sh10.5 billion, a swing of Sh16 billion from a loss of Sh5.6 billion reported in 2022! This remarkable feat speaks volumes about the commitment and diligence of every member of the KQ family,” Kilavuka said.
Mombasa, June 7, 2024 – The KATA Convention 2024 emerged as a pivotal platform for fostering regional synergy and collaboration within Africa’s tourism landscape. The two-day event, held at the Sarova Whitesands Beach Resort in Mombasa, brought together government officials, international associations, industry leaders, and stakeholders, with a resounding call to unlock the continent’s vast tourism potential through collective efforts.
Speaking during the event, Dr. Patrick Bucha, Tourism Secretary, delivered a keynote address on behalf of Cabinet Secretary Alfred Mutua of the Ministry of Tourism and Wildlife. Bucha emphasized the Kenyan government’s commitment to implementing policies such as the “open skies policy’’, aimed at increasing direct flights to and from the country, a strategic move to boost tourism arrivals and revenue.
“Connectivity is the lifeline of the tourism and hospitality sector,” Bucha stated, citing recent initiatives such as the launch of China Southern Airline’s direct flights between Changsha and Nairobi, as well as the inauguration of Air Brussels’ six weekly flights to Jomo Kenyatta International Airport.
Recognizing the need to diversify Kenya’s tourism offerings, the Ministry’s ambitious project to market the country as the “Home of Human Origins.” This initiative focuses on showcasing Kenya’s rich archaeological and paleontological findings, including the development of a museum and science park at the Lake Turkana Basin to highlight the nation’s human heritage.
Bucha further endorsed the diversification of tourism offerings beyond conventional staples, advocating for medical tourism and acknowledging the private sector’s pioneering role in fostering innovation within the travel industry.
The convention witnessed a strong emphasis on regional collaboration, with H.E. Amb. Paul Mukumbya, the Consul General of Uganda based in Mombasa, highlighting the importance of economic and commercial diplomacy with Kenya. Mukumbya expressed gratitude for the partnership with KATA in organizing the successful Uganda-Kenya Coast Festival and reaffirmed Uganda’s commitment to increasing visitor numbers from its largest source market, Kenya.
“We must overcome the existing seasonality between our neighboring markets and address travel advisories,” Mukumbya urged travel agents, while also encouraging investment in cruise ship tourism on Lake Victoria to enhance cross-border tourism.
Echoing the call for regional integration, Pearl Houreau, Chairperson of the Uganda Travel Agents Association, emphasized the necessity for travel agents to engage policymakers in operationalizing a unified visa among African countries. “Such a visa would significantly enhance intra-Africa travel, making it easier for tourists to move across borders and boosting regional tourism,” Houreau stated.
Patrick Kimenyi, Secretary for Rwanda Travel Agencies, stressed the need to promote African destinations, lamenting that Africans often know more about other continents than their own. “We must raise awareness and appreciation for the diverse travel opportunities within Africa,” he underscored.
Hamida Malik, Chairperson of the Travel Agents of Zambia Association, encouraged Kenyans to visit the “hidden gem” that is Zambia, revealing that an MOU has been signed with the Kenyan government to facilitate travel between the two countries. Malik also highlighted efforts to streamline visa issues, making travel between Kenya and Zambia more accessible and appealing.
As the KATA Convention 2024 drew to a close, it served as a testament to the collective aspiration of fostering regional synergy and collaboration within Africa’s tourism landscape. By convening industry leaders, stakeholders, and policymakers from across the continent, the convention paved the way for a more integrated and prosperous future for the region’s travel and tourism sector.
When Qatar Airways, in Dec-2019, signed an agreement with Rwanda’s government to acquire a 60% stake in the new Bugesera Airport, presently under construction, it was initially considered a strange decision for the airline, even if it had already taken an interest in the sector (specifically with the Vnukovo airport in Moscow; a deal that still hasn’t been closed).
But the airline’s method has become clearer lately as it positions itself not only to take a 49% stake in RwandAir – the flag carrier – as well, but also potentially in a so far unnamed Southern African airline.
Central/East Africa could do with a genuine continental level hub. Nairobi and Addis Ababa are both capable of being one, but neither seems to be able to get over the line for one reason or other.
Starting out with a clean slate, at an airport set up for hubbing transfer passengers (assuming it is), with a compliant minor partner, and in a country which is starting to show economic potential 30 years after its dreadful civil war, could provide Qatar Airways with leverage in what is supposed to be about to become the world’s fastest growing continent for aviation.
Qatar Airways ‘to announce southern Africa airline investment’ soon
Qatar Airways CEO Badr Mohammed Al Meer said recently that the company was planning to announce an investment in an airline in southern Africa in May-2024 or Jun-2024.
Mr Al Meer added that the investment would complement the airline’s proposed acquisition of a 49% stake in RwandAir and its 60% stake in Kigali Bugesera International Airport.
Mr Al Meer, who became the airline’s CEO in Nov-2023, sees the southern part of Africa as a gap in Qatar Airways’ network coverage that it should fill. Although Qatar Airways already flies to (in excess of) 30 cities across Africa, the southern part of the continent is regarded as being the “last piece of the equation”, and one that would help it to gain greater scale where there has been rising travel demand in recent years.
Seat capacity as well as passenger demand on the rise across the African continent
The chart below confirms that seat capacity, too, has been on the rise in the Southern African region – from 2012 to 2019, and consistently with one exception (2013). Growth in that period was almost +28%, and growth in 2023 was +22% over the previous year, bringing capacity back to the level of 2014 after the COVID-19 pandemic disruption.
What is interesting, though, is that capacity growth in Africa as a whole was considerably higher in that period (+44%), and that growth in 2023 put the capacity back to in excess of the 2019 level, not at the 2014 one. What’s more, there are almost as many seats now, less than halfway through 2024, as there were in 2023.
That does suggest that Qatar Airways might be over-egging the importance of the Southern Africa market, and that it might benefit from looking at what is happening elsewhere on the continent.
It also wishes to help expand the operations of its partner airlines in Africa to improve connectivity.
The airline’s focus already seems to be on the east and south of Africa
As the map below shows, the airline is already established, with routes mainly in the east and south rather than the west and north of the continent.
It is entirely possible that Mr Meer might have been referencing the proposed stake in RwandAir, rather than a further one in a southern African country’s airline; even if airlines such as South Africa Airways, for example, would surely benefit from it.
Rwanda‘s strategic position at the heart of Africa
Rwanda is located almost on the equator and is neighbours with Uganda, Burundi, Tanzania and the Democratic Republic of the Congo. It can hardly be referred to as a southern African country, except insofar as it lies south of the Sahara Desert and the Maghreb, which are the usual designators of the ‘north’.
But Rwanda‘s strategic location is paramount – approximately in the centre of the continent, and with the new airport under construction there (Bugesera) in a position to do what Kenya‘s Nairobi Jomo Kenyatta airport and Ethiopia‘s Addis Ababa Bole airport aspire to do without ever quite succeeding: namely, to act as a centralised hub for the entire continent.
RwandAir has established its own small niche hub in the region
In order to have a successful hub a strong flag carrier is needed, and although RwandAir does not have the scope of Nairobi or Addis Ababa, it is growing.
The route network map below shows that the airline has an established network to the east, west and south of the continent (only the north is underrepresented), as well as to major cities in western Europe and the Gulf (including Qatar), based at the existing airport.
RwandAir: network map for the week commencing 27-May-2024
The bloody civil war is becoming a distant memory as services, finance and tourism dominate today’s economy
Rwanda is best known internationally for two things.
Firstly, the civil war between 1993 and 1996, which saw the slaughter of up to 800,000 people, one tenth of the population, in just three months in 1994.
Secondly, the more recent agreement (2023) struck with the United Kingdom to receive illegal immigrants into the UK as deportees.
It is fair to say that although it is still a poor country by ‘First World’ standards, its agriculture still taking the form of subsistence farming on rich volcanic soils that promise much more, Rwanda has experienced a dynamic transformation since the genocide.
It is today regarded as a fast growing Sub-Saharan economy, yet conversely with growing levels of poverty. It has major public investments, is a major exporter of coffee, and is in competition with Uganda for regional influence.
Rwanda has only a small industrial sector, so a great deal of emphasis is put on the service sector, including banking and finance, hotels and restaurants, transport, storage, communication, insurance, real estate, business services and public administration (which is its largest sector).
Tourism is one of the fastest growing economic resources and became the country’s leading foreign exchange earner almost 20 years ago. In spite of the genocide’s legacy, the country is increasingly perceived internationally as a safe destination, with a tourism focus on creatures in their natural habitats.
Approaching two million annual tourists before the COVID-19 pandemic
Tourism spending, which was next to zero as recently as 2004 (a decade after the genocide), reached USD636 million in 2019, from USD67 million in 2005.
In 2018 there were 1,715,000 tourists (the total declined slightly in 2019), and that was the highest total ever recorded, well above the average (1.2 million) for the 13 East African states.
It is a mark of how far the ‘land of a thousand hills’ has come touristically that adverts for ‘Visit Rwanda‘ are beamed around the world on televised football matches in London (ironically, the Emirates Stadium) during Premier League, domestic cups, and Champions League matches, on account of a sponsorship deal with Arsenal Football Club.
For Qatar Airways it is ‘virgin territory’, and with less Chinese influence than elsewhere on the continent
So it is beginning to become evident why Qatar Airways is interested in Rwanda – a country with a growing economy in the service, finance and tourism sectors, centrally located on the continent, with an economic workforce about to be reinforced by immigrants, and one where although there is economic cooperation with China, it is not at the same level as found elsewhere in Africa.
(Indeed, the Portuguese company subsidiary Mota Engil Engenharia e Construção Africa SA replaced China State Construction Engineering Corporation as the key contractor for the new airport project when construction began in 2017, a year after the project was pitched to delegates at the Global Airport Development conference in Lisbon).
The new Bugesera airport is a USD1.3 billion project, to handle up to 8mppa eventually
While an investment into RwandAir may or may not happen, the one by Qatar Airlines into the new Bugesera Airport is tangible.
The map below is of the three existing commercial airports in Rwanda, including the Kigali International Airport serving the capital.
In 2019 the airline took a 60% stake in the USD1.3 billion (originally USD800 million) international airport being constructed in Rwanda, Bugesera; one has to say, at a leisurely pace, as it is currently due to open in 2027/28, put back from 2026.
Part of the reason for the delay, apart from the pandemic, is that in Mar-2019 some elements of the construction were put on hold to accommodate a redesigning of the facility.
Then, in 2021, it entered into a code share agreement with RwandAir, operating around 150 flights between Doha and Kigali between them, between 2022 and 2023.
RwandAir is very much a junior partner. Although Qatar Airways operates over 250 aircraft, RwandAir has only 14 aircraft, including two ageing AirbusA330-200s that serve intercontinental routes.
In May 2023 Qatar Airways Cargo initiated a hub at Kigali International Airport in partnership with RwandAir for its cargo handling, in order to expand the airline’s African air cargo network and meeting up to 5% of its annual economic growth forecast for the continent within a decade.
‘No better partner or location for an African hub’ – Qatar Airways
Qatar Airways has previously stated that it couldn’t find any better partner or location to create or to build a hub for it and its partners in central Africa other than Kigali.
The airport, located 25km southeast of Kigali, which is being built in cooperation with Qatar‘s government, will be equipped with a 130,000sqm terminal and will have capacity to handle 1.7 million passengers per annum initially (phase 1) and eight million eventually – that would put it in the top five African airports now.
It will have a 4,200m runway.
The potential to fill a void and thereby create a broader, even possibly pan-continental, hub
Just what impact Bugesera will have in the immediate region and on the continent as a whole is yet to be revealed, but there is the potential at least for it to fill a void in the central/east African region – where Nairobi’s main airport needs a new terminal but delivery of it is long overdue, and while Addis Ababa‘s new airport, the site of which was first conceived in 2014, has yet to see a spade turned on it.
Rwanda does not have the population (14 million) for Bugesera to become a major point-to-point airport, and the existing Kigali Airport does not make the Top 20 busiest airports on the continent.
The investment Qatar Airways has made, and is apparently about to make, in Rwanda has a distinct purpose. Together with an expanded RwandAir it can set up a central continental base and hub to compete with any other, and one that would be well placed to interact with any future expansion in the southern part of the continent.
The African Civil Aviation Council (AFCAC) yesterday revealed that the agency has discovered 59 new Africa air routes, 13 of which operate under fifth freedom air traffic rights.
These developments mark significant progress in the implementation of the Single African Air Transport Market (SAATM), the council said in a report yesterday.
Secretary General of AFCAC, Adefunke Adeyemi said Africa’s discovery of 59 new air routes, including 13 fifth freedom routes, marks a positive step towards enhanced connectivity.
Last year, we discovered that 59 new routes are being operated in Africa. 13 of those 59 routes are fifth freedom routes. This is significant progress. It is not where we need to be, yet it is movement in the right direction, and we will continue to monitor this.’
Fifth freedom air traffic rights refer to the right granted by one country to an airline of another country to carry passengers or cargo from its own country to a second country, and then onward to a third country.
This essentially allows an airline to operate flights between two foreign countries, with a stopover in its own country.
Adeyemi emphasized the importance of these new Africa air routes in enhancing connectivity across the continent. However, she also stressed that developing new routes alone is insufficient without passengers or cargo to support them. ‘What good is the development of new routes when people and goods cannot move around?’ she questioned.
Consequently, the AFCAC Scribe mentioned that the commission is supporting a robust regulatory framework for SAATM through the Civil Aviation Authorities (CAAs). Additionally, models are underway to promote affordable and accessible travel for more than the current 10% of Africans traveling by air.
Adeyemi also highlighted the need for an improved visa regime across the continent. She stressed that the true potential of new routes can only be realized when people and goods can move freely.
